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Morgan Stanley tells banks to chase corporate clients, not hedge funds

Sales and trading revenues fell sharply last year as investment firms bought and sold fewer securities in calm markets

Morgan Stanley tells banks to chase corporate clients, not hedge funds

Investment banks need to prioritise winning more corporate clients over trading on behalf of hedge funds and asset managers, according to an influential annual health check of the industry.

Sales and trading revenues at the world's biggest banks fell sharply last year as investment firms bought and sold fewer securities in calm markets. The pain was felt most by banks' fixed income teams, which saw revenues drop by around 11% to $68bn in 2017.

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